realestate

HUD faces significant staff reductions amidst CFPB lawsuit delay

Elon Musk's DOGE team shakes up D.C., targets HUD staff cuts, as CFPB awaits new director.

A
seismic shift is underway at the Department of Housing and Urban Development (HUD) as Elon Musk's DOGE team takes the reins, with a potential staff reduction of up to 50% looming large. The arrival of Scott Turner, HUD's new secretary, has brought a fresh wave of enthusiasm, with $260 million in savings already identified through the task force's efforts.

    However, not everyone is celebrating. AFGE Council 222 President Antonio Gaines warns that as many as half of HUD's field offices could be closed, along with significant job cuts. The Fair Housing and Equal Opportunity office, Policy Development and Research, and Community Planning and Development are among those in the crosshairs.

    Meanwhile, the Consumer Finance Protection Bureau (CFPB) is navigating a treacherous landscape. Former FDIC board member Jonathan McKernan has been nominated to lead the agency, which faces multiple lawsuits and ongoing layoffs. The bureau's rule-making and enforcement activities have been frozen since early February, but a lawsuit from the city of Baltimore has temporarily preserved funding until February 28.

    In another case, plaintiffs are seeking to block efforts to shut down the CFPB, which reportedly includes plans to fire over 95% of employees by February 14. The filing argues that such drastic measures would render the bureau unable to fulfill its statutory duties. McKernan's nomination has been met with praise from the Mortgage Bankers of America, who hail him as a "strong choice" due to his extensive experience in regulation and housing policy.

U.S. Housing and Urban Development staff reduced amidst CFPB lawsuit delay controversy.